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skelet666 [1.2K]
3 years ago
6

Which of the following reflects the order of operations when the Fed buys bonds on the open market?a. Money supply increases, in

terest rates decrease, investment spending increases, AS shifts right.b. Money supply decreases, interest rates increase, investment spending decreases, AD shifts left.c. Money supply increases, interest rates increase, investment spending increases, AD shifts right.d. Money supply decreases, interest rates increase, investment spending decreases, AS shifts left.e. Money supply increases, interest rates decrease, investment spending increases, AD shifts right.
Business
1 answer:
muminat3 years ago
7 0

Answer:

Reflection of order of operations when the Fed buys bonds on the open market:

a. Money supply increases, interest rates decrease, investment spending increases, AS shifts right.

Explanation:

When the Federal Reserve buys bonds on the open market, the action increases the money supply in the banks.  This allows banks to increase loans, and investors will increase investments.  It also increases the price of government securities and effectively reduces their interest rates, thereby decreasing the overall interest rates while promoting investments.

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Which of the following falls outside of the classification of business expenditures that fall into the category of variable cost
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The option that falls outside of the classification of business expenditures that fall into the category of variable costs is option C. costs of research and development. Read below about costs of research and development.

<h3>What is a costs of research and development?</h3>

These are costs taken to develop new products or processes that may or may not result in commercially viable items. The general rule is that research and development costs are to be expensed immediately when the costs are incurred.

Therefore, the correct answer is as given above.

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4 0
1 year ago
Which of the following should be considered when deciding on a loan?
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The answer is d all of the abovten
6 0
3 years ago
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Ray has six hours before he goes to bed on a school night. He plans to spend an hour surfing the Internet, two hours playing his
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4 0
3 years ago
You own a portfolio that is 34 percent invested in Stock X, 22 percent invested in Stock Y, and 44 percent invested in Stock Z.
Sonja [21]

Answer:

13.86%

Explanation:

34% was invested into stock X with an expected return of 11%

22% was invested into stock Y with an expected return of 18%

44% was invested into stock Z with an expected return of 14%

The expected return on the portfolio can be calculated using the formula below

Expected return= Sum of ( weight of stock×return of stock)

= (0.34×11%)+(0.22×18%)+(0.44×14%)

= 3.74+3.96+6.16

= 13.86%

Hence the expected return on the portfolio is 13.86%

5 0
3 years ago
Elite Trailer Parks has an operating profit of $307,000. Interest expense for the year was $32,000; preferred dividends paid wer
ollegr [7]

Answer:

a. $8.33

$1.95

b.$136,500

Explanation:

The computation of earnings per share and the common dividends per share is shown below:-

a. Earning per share = Earnings Available to Common Stockholders ÷ Number of Shares of Common Stock Outstanding

= $178,300 ÷ 21,400

= $8.33

Dividends per Share = $41,800 ÷ 21,400

= $1.95

b. Increase in retained earnings = Operating Profit (EBIT) - Interest expense - Taxes - Preferred dividends - Common dividends

= $307,000 - $32,000 - $65,100 + $31,600 + $41,800

= $136,500

We simply applied the above formulas

7 0
3 years ago
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